Georgia real estate exam
Easement by prescription Correct answers Easement acquired by continuous
open and hostile use of the property for the period of time prescribed by
state law
Easement by necessity Correct answers Easement allowed by law as
necessary for the full enjoyment of parcel of real estate .(right of ingress and
egress over a grantors land)
Rescission Correct answers The practice of one party canceling or
terminating a contract.
Mortgagee Correct answers The bank(receiving the house)
Tax prorations Correct answers Taxes are paid July 1st, 365 days, seller
pays the day of closing.
Alienation clause Correct answers Clause stating that the balance of the
secured debt becomes immediately due and payable at the lenders option
if the property is sold by the borrower. Prevents the borrower from
assigning the debt without the lenders approval.
Deed Correct answers Does not need to be recorded to be valid.
Economic characteristics of real estate ( LIPS) Correct answers
Location Improvements
Permanence of investment
Scarcity
Fiduciary relationship with the principle (COLDAC) Correct
answers Care Obedience
Loyalty
Disclosur
e
Accountabili
ty
Confidentiali
ty
Types of real estate ( SIR MAC) Correct answers Special
purpose Industrial
Residential
Mixed use
Agricultura
l
Commerci
al
, PITI Correct answers
Principle Interest
Taxes
Insuranc
e
Diminishing returns Correct answers The point when additional
improvements do not increase value
Increasing returns Correct answers Produces an increase in income
and value Cancel a contract Correct answers Stop where you are
Recind contracts Correct answers Start over back to starting place
Fee simple determinable Correct answers A fee simple estate qualified
by a special limitation
"So long
as"
"While"
"During"
Automatic
ally
reverts
back to
owner .
Fee simple subject to a condition subsequent Correct answers If an estate is
no longer used for the purpose conveyed , it reverts back to the original
grantor by the right of re- entry. Have to go to court
Fee simple defeasible Correct answers Subject to the occurrence or non
occurrence of a specified event. Ex. Land for a church can only be used for
religious reasons
Conveyance Correct answers Moved the property
Origination fees Correct answers Cost for doing the loan. 1% of loan amount
Brokerage relationships in real estate transactions act( BRRETA) Correct
answers Governs real estate relationships
Special agent(designated agent) Correct answers Represents the
principal in one specific act or business transaction only, under detailed
instruction.
General agent Correct answers Represents the principle in a broad
range of matters
Universal agent Correct answers Empowered to do anything the
principle could do personally
Voidable Correct answers Could be, seemed that everything was ok but
found out later. Ex. Contract with a minor
Easement by prescription Correct answers Easement acquired by continuous
open and hostile use of the property for the period of time prescribed by
state law
Easement by necessity Correct answers Easement allowed by law as
necessary for the full enjoyment of parcel of real estate .(right of ingress and
egress over a grantors land)
Rescission Correct answers The practice of one party canceling or
terminating a contract.
Mortgagee Correct answers The bank(receiving the house)
Tax prorations Correct answers Taxes are paid July 1st, 365 days, seller
pays the day of closing.
Alienation clause Correct answers Clause stating that the balance of the
secured debt becomes immediately due and payable at the lenders option
if the property is sold by the borrower. Prevents the borrower from
assigning the debt without the lenders approval.
Deed Correct answers Does not need to be recorded to be valid.
Economic characteristics of real estate ( LIPS) Correct answers
Location Improvements
Permanence of investment
Scarcity
Fiduciary relationship with the principle (COLDAC) Correct
answers Care Obedience
Loyalty
Disclosur
e
Accountabili
ty
Confidentiali
ty
Types of real estate ( SIR MAC) Correct answers Special
purpose Industrial
Residential
Mixed use
Agricultura
l
Commerci
al
, PITI Correct answers
Principle Interest
Taxes
Insuranc
e
Diminishing returns Correct answers The point when additional
improvements do not increase value
Increasing returns Correct answers Produces an increase in income
and value Cancel a contract Correct answers Stop where you are
Recind contracts Correct answers Start over back to starting place
Fee simple determinable Correct answers A fee simple estate qualified
by a special limitation
"So long
as"
"While"
"During"
Automatic
ally
reverts
back to
owner .
Fee simple subject to a condition subsequent Correct answers If an estate is
no longer used for the purpose conveyed , it reverts back to the original
grantor by the right of re- entry. Have to go to court
Fee simple defeasible Correct answers Subject to the occurrence or non
occurrence of a specified event. Ex. Land for a church can only be used for
religious reasons
Conveyance Correct answers Moved the property
Origination fees Correct answers Cost for doing the loan. 1% of loan amount
Brokerage relationships in real estate transactions act( BRRETA) Correct
answers Governs real estate relationships
Special agent(designated agent) Correct answers Represents the
principal in one specific act or business transaction only, under detailed
instruction.
General agent Correct answers Represents the principle in a broad
range of matters
Universal agent Correct answers Empowered to do anything the
principle could do personally
Voidable Correct answers Could be, seemed that everything was ok but
found out later. Ex. Contract with a minor
